MOSCOW (MRC) -- The rising Australian dollar and cost pressures have pushed global packaging manufacturer Amcor Ltd. to shut two manufacturing sites and to downsize another site, said Plasticsnews.
The company said market pressures mean the plants are now "unsustainable."
Amcor Australasia Managing Director Nigel Garrard made the announcement Feb. 18 while briefing investors on the company's half-year results for the six months ending Dec. 31.
Melbourne-based Amcor makes PET beverage containers, flexible packaging for the food and health-care markets, tobacco packaging, and corrugated boxes. It also has recycling operations.
Amcor is shutting down a Thomastown, Australia, plant that makes metal and plastic beverage closures. The company will divest its small metal closures operation and outsource plastic closures manufacturing to a third party, which a spokeswoman would not identify.
Amcor estimates it will cost USD7.1 million to close the Thomastown plant in mid-2013. Eighty jobs will be lost.
Amcor will downsize another facility in North Laverton, Victoria, which supplies Thomastown with decorated metal products used to manufacture metal closures. Phased downsizing will occur March through June, costing 17 jobs.
Amcor will shut a recycled cartonboard mill in Petrie, Queensland, by the end of the year, costing 220 jobs. "Due to several structural changes in the competitive environment, the mill is no longer covering its cash costs," the company said in a report to investors.
As MRC wrote earlier, Amcor sold three of its flexible packaging plants in Australasia in late 2012. The sites were acquired as part of the Aperio acquisition and focused on non-core industrial and agricultural markets.
Amcor Limited is an Australian-based multinational packaging company. It operates manufacturing plants in 42 countries. It is the world's largest manufacturer of plastic bottles.
MRC